The agricultural and agribusiness sector has been identified by different stakeholders in the Nigerian economy as the sector that holds the key to unlocking the economy and positioning it for sustained growth and development. The sector is currently the most active in Nigeria in terms of its contribution to Gross Domestic Product (GDP) – currently contributing about 22.9 percent to GDP and providing employment to over 60 percent of the country’s working population.
There has been massive government intervention in the sector through NIRSAL’s two-pronged approach of directly tackling the challenges within the agricultural value chain by providing financing options and the CBN’sANCHOR borrowers scheme-which focuses on creating economic linkage between smallholder farmers and reputable large scale processors. However, the sector is still moving at a snail pace with its growth in the second quarter of 2019 estimated at 1.79 percent.
In addition to its slow growth , the agricultural sector is currently underperforming in terms of its contribution to the country’s total revenue. One explanation for the slow response of the sector to government intervention is that it is the least understood sector in Nigeria. It is also the most risky sector to invest in given its closeness to forces outside the control of the investors such as government policy, weak institution, poor infrastructure, and volatile changes in weather condition, community issues and the land tenure system.
This course, a comprehensive agricultural/agribusiness training programme is designed to deepen the knowledge and skills of agricultural sector credit managers, insurance risk managers, finance institutions managing medium to large scale agric corporations, bank and insurance regulators as well as multinational corporations operating in the agricultural sector in Nigeria. The course covers exploration of the agriculture/agribusiness value chain as well as every aspect of agricultural credit from origination to collection and management of delinquent loans.
Key Learning Objectives/ Benefits
The aim is to provide bankers, insurers and fund managers with a broad knowledge of the agricultural sector and the agribusiness space with a view to highlighting the uniqueness of the agribusiness sector to the Nigerian economy. The course opens participants and investors to the challenges, opportunities and diversity of the agribusiness value chain
- Introduction to agriculture/agribusiness value chain
- Evaluate agricultural credit needs in the context of the upstream, midstream and downstream sector of the agriculture/agribusiness value chain
- Understand the loan application process and what to look out for in a typical farm visit
- Understand the role of cash flow, farm records, account bookkeeping in making agricultural lending decision
- Understand the loan approval and follow-up process for a typical agriculture/agribusiness firm
- Understand loan portfolio management in relation to agriculture/agribusiness sector
- Understand the process of packaging client’s loan application for approval or rejection
- Understand the intricacies of agricultural credit risks and how to mitigate such risk
- Develop an appreciation for the purpose of loan policy, managing loan collection and managing delinquent loans